Paytm shares were trading 1.23% lower at Rs 532 on NSE intraday on Wednesday. Shares of One 97 Communications Ltd (Paytm’s parent company) have been falling for a while now. However, the stock came under intense pressure recently when the lock-in period for pre-IPO investors ended. Currently, the Paytm scrip is trading down 72% from its listing price of Rs 1,950 apiece, and down 72.8% from its all-time high of Rs 1,961.05, which it touched on the listing day. At the current market price, it has a total market capitalisation of Rs 34,584 crore.
Paytm stock call: Check analyst recommendations, price targets
JP Morgan has an ‘Overweight’ rating on Paytm stock. “We value PAYTM using a DCF valuation, baking in a rising cost of capital with a 18.5% COE and a 20x exit multiple that yields a Mar-23 PT of Rs 1,100. The reduction in cash because of buyback offsets the reduction in share count thereby keeping our PT unchanged. Reiterate OW,” JP Morgan analysts said in a note.
Paytm share buyback details
According to Paytm’s regulatory filing, the company’s share buyback, announced this week, will occur within a maximum period of six months in the open market through the stock exchanges’ order-matching mechanism. Based on the minimum and maximum buyback price, the company would buy a maximum of 1.05 crore shares, comprising approximately 1.62% of the paid-up equity share capital of the company as of 31 March 2022. Assuming a full buyback of Rs 850 crore, and applicable buyback taxes, the total outlay is likely to be in excess of Rs 1,048 crore.
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